• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exam Results

Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

factors that determine the suitability of SAPs

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › factors that determine the suitability of SAPs

  • This topic has 3 replies, 3 voices, and was last updated 3 years ago by Kim Smith.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 13, 2021 at 4:42 am #631393
    Jiya024
    Member
    • Topics: 168
    • Replies: 56
    • ☆☆☆

    Professor is it possible for you to provide examples of these? As it is little difficult to conceptualise…

    factors that determine the suitability of analytical procedures:

    1.Precision of expectation. The auditor should consider whether a sufficiently precise expectation can be developed to be able to identify a material misstatement. If not, there is limited use in using analytical procedures.

    2. Amount of difference between expected amounts and recorded amounts that is acceptable. This will depend on the level of materiality and the desired level of assurance required by the auditor.

    Many thanks!

    August 13, 2021 at 6:56 am #631400
    Kim Smith
    Keymaster
    • Topics: 135
    • Replies: 8312
    • ☆☆☆☆☆

    I already responded to your first query last month https://opentuition.com/topic/suitability-of-analytical-procedures

    Your 2nd question is related – if the auditor develops an expectation of c. $1.6m – and the recorded amount is $2m – the SAP is not suitable (it does not provide sufficient appropriate audit evidence) if materiality is $50,000. The auditor will have no choice but perform tests of details to verify $2m.

    August 13, 2021 at 9:49 am #631429
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    maam but the difference between expected and recorded amount is only of $40000, way below the materiality level of $50000. so then why would the auditor have to conduct tests fo detail?

    August 13, 2021 at 10:16 am #631435
    Kim Smith
    Keymaster
    • Topics: 135
    • Replies: 8312
    • ☆☆☆☆☆

    The difference between $2m and $1.6m is $400,000 …

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • verweijlisa on Financial performance – Example 2 – ACCA Financial Reporting (FR)
  • John Moffat on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • John Moffat on The Statement of Financial Position and Income Statement (part d)
  • Salexy on Linear Programming – Spare capacity and Shadow prices – ACCA Performance Management (PM)
  • omerbasheer on The Statement of Financial Position and Income Statement (part d)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in